Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Edwards Lifesciences Corp., EBITDA calculation
US$ in thousands
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
The financial performance demonstrates significant fluctuations and overall growth over the observed period. Key profitability indicators reflect varying trends, underscoring both challenges and recovery phases.
- Net Income
- The net income increased substantially from 583.6 million at the end of 2017 to 1.5031 billion at the end of 2021. There was a marked increase between 2018 and 2019, reaching over 1 billion, followed by a decline in 2020. However, a strong rebound occurred in 2021, with net income reaching its highest level in the period analyzed.
- Earnings Before Tax (EBT)
- The earnings before tax showed a less consistent trend. Starting at 1.0349 billion in 2017, it declined notably in 2018 to 761.4 million, before recovering to 1.1665 billion in 2019. Similar to net income, EBT decreased again in 2020 but surged significantly in 2021 to 1.702 billion, indicating improved operational efficiency or favorable tax circumstances in the latest year.
- Earnings Before Interest and Tax (EBIT)
- EBIT followed a trajectory analogous to EBT, starting at 1.0581 billion in 2017, dipping in 2018, climbing in 2019, and then decreasing in 2020. The final year, 2021, saw a pronounced increase to 1.7204 billion, which surpasses all previous years, implying stronger core operational profitability despite earlier volatility.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA values reveal a similar pattern of fluctuation but with an overall upward trend. Beginning at 1.14 billion in 2017, EBITDA dropped in 2018, then rose steadily through 2019 and 2020. The year 2021 registered the highest EBITDA at 1.8552 billion, suggesting improved cash flow generation capacity and operational performance.
In summary, the data depicts a period of initial growth, followed by a decline in 2018 and 2020, possibly linked to external pressures or internal adjustments. The recovery and strong growth in 2021 across all earnings metrics indicate enhanced profitability and potentially strengthened market or operational positioning. This upward trend in the final year underscores the company's resilience and capability to improve financial outcomes after setbacks.
Enterprise Value to EBITDA Ratio, Current
Edwards Lifesciences Corp., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in thousands) | |
| Enterprise value (EV) | 66,267,039) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 1,855,200) |
| Valuation Ratio | |
| EV/EBITDA | 35.72 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| Abbott Laboratories | 21.84 |
| Elevance Health Inc. | 6.33 |
| Intuitive Surgical Inc. | 53.65 |
| Medtronic PLC | 15.08 |
| UnitedHealth Group Inc. | 11.71 |
| EV/EBITDA, Sector | |
| Health Care Equipment & Services | 15.17 |
| EV/EBITDA, Industry | |
| Health Care | 15.51 |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Edwards Lifesciences Corp., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Enterprise value (EV)1 | 66,267,037) | 53,931,479) | 47,290,710) | 36,573,998) | 27,806,373) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 1,855,200) | 1,039,700) | 1,276,500) | 868,700) | 1,140,000) | |
| Valuation Ratio | ||||||
| EV/EBITDA3 | 35.72 | 51.87 | 37.05 | 42.10 | 24.39 | |
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| Abbott Laboratories | 17.42 | 25.99 | — | — | — | |
| Elevance Health Inc. | 10.05 | 7.57 | — | — | — | |
| Intuitive Surgical Inc. | 44.54 | 59.12 | — | — | — | |
| Medtronic PLC | 24.41 | 17.92 | — | — | — | |
| UnitedHealth Group Inc. | 17.39 | 13.39 | — | — | — | |
| EV/EBITDA, Sector | ||||||
| Health Care Equipment & Services | 18.06 | 16.63 | — | — | — | |
| EV/EBITDA, Industry | ||||||
| Health Care | 14.33 | 18.21 | — | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 66,267,037 ÷ 1,855,200 = 35.72
4 Click competitor name to see calculations.
The data reveals notable fluctuations and developments in the financial metrics over the five-year period ending in 2021.
- Enterprise Value (EV)
- The enterprise value demonstrates a consistent upward trend throughout the period. Beginning at approximately 27.8 billion US dollars in 2017, it increased steadily each year, reaching around 66.3 billion US dollars by 2021. This more than doubling in value indicates growing market valuation or adjustments reflecting changes in capital structure, debt levels, or equity value.
- Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)
- EBITDA exhibits a more variable pattern with some volatility. Initially, it declines from 1.14 billion US dollars in 2017 to 868.7 million in 2018. This is followed by a significant increase to 1.28 billion in 2019, before decreasing again to approximately 1.04 billion in 2020. The year 2021 shows a notable rise to 1.85 billion US dollars, the highest within the timeframe. This suggests operational performance experienced oscillations, with a strong improvement in the latest year.
- EV/EBITDA Ratio
- The EV/EBITDA ratio reflects variations likely linked to the changes in both EV and EBITDA. Starting at 24.39 in 2017, it climbs sharply to 42.1 in 2018 and slightly decreases to 37.05 in 2019. A peak ratio of 51.87 is observed in 2020, implying the enterprise value grew disproportionately relative to EBITDA in that year. In 2021, the ratio falls to 35.72, indicating a more balanced or improved valuation multiple concurrent with the significant EBITDA growth.
Overall, the company appears to have increased its valuation considerably over the period, with operational earnings showing some instability but an encouraging rebound in the final year. The EV/EBITDA multiple’s fluctuations suggest varying market perceptions of valuation relative to earnings, with a peak valuation premium occurring in 2020 before a normalization in 2021.